The Insurance Council of Australia (ICA) has expressed strong support for the Liberal-National Coalition’s recent initiative aimed at boosting economic growth, reducing regulatory burdens on financial services businesses, and positioning Australia as a leading financial centre in the region.
In a statement, the ICA emphasized the significant costs that regulatory friction imposes on Australian financial services businesses, ultimately impacting consumers. The Council welcomed the Coalition’s proposal to reform the Corporations Act 2001, simplifying financial services law and providing regulatory certainty. Such reforms, the ICA noted, would enhance Australians’ access to a broader range of products and services, including insurance.
Additionally, the Coalition’s pledge to address labour shortages in key industries was also praised by the ICA. Labour shortages in the motor supply chain, particularly in the context of the motor insurance sector, were highlighted as a major concern. According to the ICA’s Motor Insurance Policy Paper, released last week, these shortages have led to delays in resolving insurance claims and rising costs, causing frustration among consumers.
Addressing the skills gap within the Motor Trades sector is seen as crucial to maintaining an efficient and effective motor insurance market, which will ultimately benefit Australian motorists.
ICA CEO Andrew Hall commended the Coalition’s commitment to reforming capital markets and reducing regulatory costs within the financial services sector. He said, “We support the Coalition’s efforts to reduce regulatory burdens and ensure Australians can more easily obtain the insurance coverage they need.”
Hall further emphasized that creating a well-balanced regulatory framework would improve access to essential financial services for Australians throughout their lives. He also highlighted the importance of investing in apprenticeships and training programs to strengthen supply chains, particularly within the motor supply chain, where labour costs now account for approximately 30% of claims costs.
He concluded, “Bolstering the workforce across the sector will not only reduce repair times—now averaging over 61 days, up from 38 days in 2019—but also help ensure the sustainability and efficiency of the industry moving forward.”
Related Topics:
Malaysia’s Public Accounts Committee to Hold More Hearings on Rising Health Insurance Costs
Challenger Announces Dai-ichi Life as New Strategic Shareholder
Nominations Open for the 2025 Asia Insurance Industry Awards
